Titus Company manufactures and distributes industrial air compressors. The following costs are available for the year ended December 31, 2012. The company has no beginning inventory. In 2012, 1,500 units were produced, but only 1,300 units were sold. The unit selling price was $4,500. Costs and expenses were:

                

Instructions
  (a) Compute the manufacturing cost of one unit of product using variable costing.
  (b) Prepare a 2012 income statement for Titus Company using variable costing.